Minnesota Life Insurance License Practice Exam

At the time of initial contact, what must a producer disclose to a potential client?

1. The producer's work history

2. The business address of the producer

3. The name of the producer and the person making the contract

4. The commissions involved in the policy

The correct answer is: The name of the producer and the person making the contract

A producer must disclose their identity and the identity of the person who is responsible for the contract at the time of initial contact with a potential client. This requirement is fundamental to ensure transparency and build trust between the producer and the client. By clearly stating their name and that of the person making the contract, the client can better understand who they are dealing with and what to expect from the interaction. This disclosure is important because it establishes a professional relationship based on accountability. Clients should be able to verify the legitimacy of the producer and have a clear understanding of who is guiding them through the insurance process. While aspects such as work history, business address, and commissions might be relevant in different contexts, they do not address the immediate need for identification and accountability at the initial point of contact. Therefore, focusing on the names involved is crucial for fostering a good foundational relationship between the producer and the potential client.